The Oslo-based offshore contractor could raise over $125m if it offloads 13.5 million shares at a price of $9.25 a piece and underwriters exercise options.
This forecast is based on bet that the company will price common shares at the mid-point of its estimated price range, which at last check stood at $8.50 to $10.00.
In a statement North Atlantic, which trades in Norway under the ticker “NADL”, said proceeds will likely used for what it described as “general corporate purposes” and working capital.
Morgan Stanley is listed as the lead book-running manager on the cover of its prospectus but Barclays Capital, Goldman Sachs and RS Platou Markets are lending a hand as well.
Co-managers include the likes of DNB Markets and Scotiabank/Howard Weil.
While North Atlantic did not specify how intends to use proceeds from its latest fundraiser in today’s IPO update some industry observers believe a portion will be applied to expansion.
In the company’s prospectus, which can be viewed full by clicking on the link located under the Related Media section to the right, it says it intends to identify opportunities to grow its fleet by way of newbuilding orders and “selective acquisitions”.
Seadrill, which already trades on the New York Stock Exchange, launched North Atlantic as a majority-owned subsidiary in February 2011 and continues to hold a 74% stake, according to recent regulatory filings.
The company’s fleet includes four semi-submersible drilling rigs, one ultra-deepwater drillship, two jack-ups and a pair of newbuildings that are due for delivery this year and next. At last check the projects carried a combined cost of roughly $1.25bn, of which $277m has already been paid.
North Atlantic is led by chief executive officer Alf Ragnar Lovdal and chief financial officer Rune Magnus Lundetrae, who serves the same function at Seadrill. Norwegian tycoon John Fredriksen and his daughter Cecilie both sit on the board of directors.
